Telomere DNA in human cells shortens during each round of DNA replication. In cancer cells, telomere shortening is compensated by telomerase or the alternative lengthening of telomere (ALT) mechanism to maintain cell division potential. The G-rich strand of telomere DNA can fold into a G-quadruplex structure and disrupt these two processes. Therefore, stabilization of the G-quadruplex by chemical ligands is emerging as a promising anticancer strategy. So far, in vitro studies on such ligands are exclusively carried out in dilute solutions. However, the intracellular environment is highly crowded with biomolecules. How G-quadruplex ligands behave under molecular crowding condition is critical for their in vivo anticancer effect. In this work, we studied several ligands for their ability to stabilize the telomere G-quadruplex and inhibit telomerase under both dilute and crowding conditions. Surprisingly, the ligands became significantly less effective or even lost the ability to stabilize the G-quadruplex and inhibit telomerase under crowding conditions. Our data attributed this consequence to the decreased binding affinity of ligands to the G-quadruplex as a result of reduced water activity and increased viscosity of the medium associated with molecular crowding. This effect is irrelevant to and overweighs the influences from other factors such as the G-quadruplex structure, cation, and ligand species. Our work illustrates a possibility that molecular crowding inside cells may reduce or limit the potency of ligands although they may be effective in dilute solution, thus strongly arguing for the necessity of evaluating ligands under more physiologically relevant conditions and designing drugs with this concern in mind.